Insider Guides to IRS Audits!

Ever wish that, as a business owner, you knew exactly what would raise "red flags" at the IRS? Or how to make an IRS audit go as smoothly and painlessly as possible?

If you're in the right type of business, you can get that information, directly from the IRS!

Traditionally, IRS examiners have been responsible for auditing many types of businesses. An examiner might audit a grocery store one week and a construction company the next. A lot of the examiner's time was spent learning about the business.

To improve efficiency, the IRS launched the Market Segment Specialization Program (MSSP). Examiners now focus on specific types of businesses. To help the examiners understand each type of business, the agency has developed training guides, called "Audit Techniques Guides." The guides explain the standard practices for the business, and tell the examiners exactly where to look for potential problems. (For example, auto repair shops sometimes don't report the parts they have in stock as inventory.)

The IRS has developed Audit Techniques Guides for dozens of business types, ranging from pizza shops to major league sports franchises. In addition, there are guides that deal with specific business practices, such as executive compensation, shareholder loans, or stock based compensation.

You can download the guides directly from the IRS website. There are other sites that distribute the ATGs as well, and some of them seem to have guides, perhaps a little out of date, that don't appear on the IRS website. Simply search the web for IRS Audit Techniques Guides to find a list!

Bob Nicholson / WYGK Consulting provides business, technology and strategic consulting for small businesses, internet start-ups and entrepreneurs.

Visit http://www.wygk.com

In The News:

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Heres how the new Form 16 will change income tax return filing this year  Business StandardForm 16 is issued annually, by an employer to an employee as a proof of salary paid and taxes deducted on it. It has two parts i.e., Part A and Part B as ...
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Mexico tax plan for Uber creates friction among ride hailing firms  ReutersMEXICO CITY (Reuters) - Mexico on Monday detailed plans to withhold tax from drivers for ride-hailing and food delivery firms such as Uber Technologies Inc ...
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In Wake Of Federal Tax Reform, Blue States Scramble To Hide High Taxes  The FederalistDemocrats insist richer people need to pay more taxes. When that becomes slightly more true because of a Republican initiative, they hide income.
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Tuesday Could Be the Beginning of the End of Philadelphia’s Soda Tax  The New York TimesA slew of opponents of the tax are running in the city's election Tuesday and beverage industry has spent more than $600000 on ads aiming to turn public ...
Tax you pay on equity investments  LivemintFor unlisted equity shares and units of debt-oriented mutual fund, the holding period should be 24 months and 36 months or more.Long-term capital gains ...
Why the Rich Don’t Get Audited  The New York TimesThe I.R.S. doesn't have the resources it needs to chase offshore accounts and tax cheats.
Tax optimiser: Salaried Shanker can save more tax if employer contributes to his NPS  Economic TimesNot only should you ask your employer for the NPS benefit, but you should also invest in the scheme on your own. You can reduce your tax outgo significantly.
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First 100 days of Modi 2.0 could see tax cut, GST rejig, bank reform  Economic TimesNEW DELHI: With the major event risk of election out of the way, analysts on Dalal Street have started speculating on what measures the government may unveil ...
Decoding income tax exemptions  LivemintEET stands for exempt-exempt-taxable where an investor can receive two exemptions on investments.The last exempt implies that lump sum amount received at ...
This strategy can help investors save on taxes — if it's done right  CNBCNot all investment losses have to be downers. Tax-loss harvesting offer investors some savings if they sell losing positions in a brokerage account. Know the ...
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Israeli Court Rules Bitcoin Is Not a Currency in Court Case Over Taxes on BTC Gains  CointelegraphThe ruling is a setback for crypto entrepreneur Noam Copel, who will now have to pay tax on $830000 in profits he made by selling bitcoin.

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